The sneaker giant has brought back Elliott Hill, one of its long-time veterans, from retirement. Hill is set to take over from the current CEO, John Donahoe, who has been leading the company since 2020. Hill’s appointment will officially take effect on October 14, according to a statement from Nike.
Hill began his journey at Nike in 1988 as an apparel sales representative intern. Over the next 30 years, he held numerous roles within the company, gaining extensive experience and contributing to Nike’s growth and success.
Elliott Hill recently shared on his LinkedIn profile that he began his career at Nike as an intern in 1988, eventually holding 19 different roles before retiring in 2020 as the President of Consumer and Marketplace.
In a recent statement, Hill expressed his deep connection to the company, saying that Nike has always been a fundamental part of his identity. He emphasized his eagerness to reconnect with former colleagues and partners while also looking forward to building new, impactful relationships that will help drive the company forward.
Hill’s return to Nike is part of a broader trend within the company, where experienced veterans are being brought back to help guide its future direction. This follows the recent rehiring of Tom Peddie, another long-time Nike executive with 30 years of experience, who rejoined the company in June as Vice President of Marketplace Partners. This move underscores Nike’s strategy of leveraging the expertise of seasoned leaders to navigate challenges and foster growth.
Experts believe that Hill’s deep experience with the company will be a significant asset as he steps into his role as Nike’s new CEO.
Hill is taking over at a challenging time for the sportswear giant. Since December 2023, Nike has been implementing a cost-saving plan aimed at reducing expenses by $2 billion over three years. This strategy includes layoffs as part of the broader effort to streamline operations and improve profitability.
Hill’s extensive knowledge of Nike’s operations and culture is expected to help navigate these difficult times, guiding the company through its current challenges while positioning it for future growth.
Nike is now intensifying its focus on partnerships with retailers, strengthening relationships with companies like Designer Brands, Macy’s, and Foot Locker. This strategic shift comes as the company reassesses its direct-to-consumer sales approach, which has recently shown signs of strain.
Management experts consulted by Business Insider noted that bringing back a seasoned Nike veteran like Elliott Hill, who has an intimate understanding of the company, could be a strategic move to stabilize and guide the brand through this challenging period. Hill’s deep knowledge of Nike’s operations and market dynamics is expected to help the company navigate its current challenges and realign its strategies for future success.
“A veteran insider like Elliott Hill brings a lot of valuable firsthand experience that could be useful in addressing Nike’s current challenges, like rebuilding strained relationships with its retail partners,” said David Daniels, an assistant professor of management and organization at the National University of Singapore, in an interview with Business Insider.
However, Daniels cautioned that insider CEOs, like Hill, may face the risk of being “too deeply entrenched in traditional ways of thinking, which could limit their ability to introduce the kind of bold, innovative strategies that are often needed in a crisis.”
“By contrast, outsider CEOs can offer fresh perspectives and a greater diversity of thought, which are important for effectively navigating complex changes,” Daniels added.
Nonetheless, Hill’s extensive tenure at Nike means he is deeply familiar with the company’s structure and has long-standing relationships with many of the employees, which could be advantageous in guiding the company through its current challenges.Top of Form
Peter Cappelli, a management and human resources professor at the Wharton School of the University of Pennsylvania, highlighted the advantages of Hill’s extensive experience. He noted, “That depth, which all CEOs had 40 years ago, means you know who the people are already, who’s who and who’s not.”
Cappelli emphasized that this familiarity is crucial, stating, “You also know what is worth preserving.” Hill’s intimate knowledge of Nike’s culture and personnel could prove beneficial as he seeks to rebuild relationships and guide the company through its current challenges.
However, this deep connection to the company can also be a double-edged sword. Cappelli pointed out that there may be “a reluctance to change in ways that hurt people still there, especially former mentors.”
Jim Duffy, a Nike analyst for Stifel Institutional, shared insights with Business Insider’s Lloyd Lee, suggesting that Hill’s return could lead to a “revitalization of the Nike culture.” He added, “I also expect you’re going to see kind of a renaissance in the innovation and product development process.”
Not many CEOs can claim to have risen from intern to the top position within a company, but Xerox’s former CEO, Ursula Burns, is one notable example. She began her career at Xerox in 1980 as a mechanical engineering summer intern while pursuing a master’s degree at Columbia University. Over the years, Burns held various roles, including positions in product development and planning, before being named CEO in July 2009.
